A POPULAR furniture chain is closing its doors and starting liquidation sales after its parent company declared bankruptcy.
Badcock Home Furniture & More has more than 380 locations nationwide in states including Florida, Alabama, Virginia, Georgia and North Carolina.
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However, after 120 years, the network is set to close all of its sites after its owner Conn’s HomePlus faced financial turmoil, the network confirmed on Tuesday.
The retailer went bankrupt last week with nearly $2 billion in debt, as well as huge overhead expenses.
Many of these financial pressures were the result of the 2023 acquisition of Badcock, which was seen as a last-ditch attempt to increase profits.
In an earnings announcement, CEO Norm Miller said he was “confident that the Badcock transaction…will position us to emerge stronger and more resilient than ever,” per Retail movement.
The news that Badcock would close all stores was confirmed by the home improvement chain on social media as it announced major liquidation sales.
“All Badcock stores are closing!” a Facebook publish to read.
“Up to 50% off merchandise while supplies last.”
When Conn’s filed for Chapter 11 bankruptcy protection, the chain announced that in addition to closing all Badcock stores, it would also lose at least half of its 170 stores.
The July 23 lawsuit saw the chain admit that it would be necessary to close “some, all or a significant number of stores.”
Florida and Texas were considered the hardest hit states, with the Sunshine State poised to lose 18 sites and the Lone Star State poised to lose nine.
However, signs on Conn’s website indicate that the chain has been forced to cease all operations due to its difficult financial situation.
In this case, that would mean 550 locations in total will close.
Both Conn’s and Badcock are advertising “going out of business sales” on their websites for 30-50% off.
Conn’s states that “everything should go site-wide and in-store.”
How does bankruptcy work?
Bankruptcy is a specific legal process that helps businesses eliminate debts they cannot pay.
The process allows businesses to start from scratch and gain access to new credit.
Overseen by federal courts, bankruptcies allow a company to more easily sell its assets to pay creditors, according to Investopedia.
Chapter 11, a common process for businesses, is used to restructure a business with the goal of staying open — even if it means selling most of the company’s properties.
Chapter 7, on the other hand, sells all of a company’s assets, putting it out of business.
Chapter 15, alternatively, allows collaboration between U.S. and foreign courts to conduct bankruptcy proceedings with “parties of interest involving more than one country,” according to the United States Courts.
The company added that it will no longer offer internal credit.
FINANCIAL TURBULATION
The end of the furniture chain comes after three years of consecutive losses, as companies face rising inflation and changes in consumption patterns as a result of reduced spending.
Its shares have plummeted 98% since June 2021.
In April, Conn is revealed in a archiving that 2023 concluded with an annual loss of almost US$77 million.
It is not yet known when the Badcock or Conn closures will occur.
However, in the comments of his Facebook post, Badcock told a disappointed customer that the stores “will be open until the liquidation sale is complete. After that, these locations will be closed.”
Thousands of workers will be impacted by the news, with Conn’s and Badcock employing about 3,800 full-time and 150 part-time employees.
Badock employees were informed of the news last week, with one store manager calling the change “a shock” when speaking to the Banner-Herald of Athens.
A list of Conn’s closings can be found on its website here with Texas being the most affected with 74 losses.
US Sun has reached out to Conn for comment.
This comes as the country faces the so-called “retail apocalypse” as stores across the country permanently close shop amid growing financial pressures.
In the first four months of 2024, North American companies announced the closure of nearly 2,600 stores.
Walgreens announced it is planning to close thousands of stores across its approximately 8,600 U.S. locations, after closing more than 20 so far this year.
Its rival Rite Aid is also carrying out a series of closures, with more than 100 scheduled to impact the same state.
Meanwhile, restaurants and fast-food chains have also been hit by several bankruptcy announcements, including from franchisees and seafood giant Red Lobster.
Restaurant Closings in 2024
BOSSes of major restaurant chains have announced a series of restaurant closures. The US Sun has compiled a list of those affected by the network.
- Biscuit Barrel: Stores in Medford, Oregon, Columbia, South Carolina and Sacramento, California, closed.
- Mod Pizza: Bosses dramatically closed 27 stores in April, including some in the state of California.
- Frisch’s Big Boy: Restaurant bosses confirmed the closure of a restaurant in Covington, Kentucky, in April.
- Outback Steakhouse: The chain will close 41 “underperforming” locations this year.
- Two dolars: Four restaurants in Ohio closed in April.
- Pepper: A restaurant in Port Arthur, Texas, has closed permanently, as has another in Irvine, California.
- Friendly: Bosses have confirmed that an establishment in Ronkonkoma, Long Island, will close.
- Pizza Hut: A restaurant in Glen Falls, New York, closed in late March, followed by four in Ohio in June and 15 in Indiana.
- Danny: Two restaurants in Boise and Nampa, Idaho, have closed.
- Carl’s Jr.: The first location in Boise, Idaho, has closed.
- In and out: A location in Oakland closed earlier this year due to crime in the area.
- cheesecake factory: The chain is expected to close a location in Memphis, Tennessee, in July.
- Applebee’s: Announced the closure of between 25 and 35 locations this year.
- Taco John’s: He closed a restaurant in Minnesota and put the building up for sale in May.
- Rubio’s Coastal Grill: Announced the closure of 48 locations in California after filing for bankruptcy.
- Burger King: It closed a California location in June after 30 years.
This story originally appeared on The-sun.com read the full story
